U.S. stocks dropped as Senate failure to pass funding bill raised threat of government shutdown.

U.S. stocks fell Thursday as the Senate failed to pass a funding bill, raising the risk of a government shutdown starting Saturday. The NASDAQ dropped 0.72% amid growing market anxiety, while the S&P 500 declined 0.13% and the Dow edged up 0.11%. Investors rotated from growth to cyclical sectors, driving high trading volume. The dollar showed mixed performance, weakening against the euro and pound but strengthening against the yen and Swiss franc, with commodity-linked currencies rising on strong oil prices. Global markets were mixed, with Japan’s Nikkei hitting a record high, Europe’s DAX plunging, and Canada’s TSX Composite declining.